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The last dividend paid by ABC company is 5 TL. The dividend is expected to grow by 4% next year, 6% in the second year,
The last dividend paid by ABC company is 5 TL. The dividend is expected to grow by 4% next year, 6% in the second year, % 3 in third year and 2% in the following years. If the expected return rate of investors (k) is 10%.
a) what is the value of this stock today (P0)?
b) What will the stock price be 10 years from today?
(Please show the formula and solve step by step.)
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